St. Clair aldermen approve $5 million lease-purchase for wastewater upgrades, authorize City Hall roof repairs and higher septic-hauler fee

On Nov. 18, 2024, the St. Clair Board of Aldermen approved a package of measures to fund infrastructure projects and adjust utility fees, including a $5 million lease-purchase financing for wastewater improvements, authorization to replace a section of City Hall's roof, and an increase to the city's third-party waste hauler fee.

The board voted to approve an ordinance authorizing a lease-purchase transaction to fund capital improvements at the city's wastewater treatment plant. City officials stated the financing would involve a $5 million borrowing (total par described in the meeting as $5.15 million), with total interest reported as $3.45 million and total debt service of about $8.6 million. The presenter said average annual debt service would be approximately $344,400 and that the true interest cost is 4.73 percent.

The city attorney, Mark Spiker of Gilmore Bell, described the financing as a lease–leaseback structure and said the legal work on the transaction was complete: "The good news is we did it; the legal work's all OK. This is structured as a lease–leaseback transaction," Spiker said, explaining that the treatment plant would be leased to a trustee bank and leased back to the city, with lease payments used to pay investors who buy the certificates (municipal bonds).

Why it matters: City officials said the funds will expand sewer intake lines feeding the wastewater treatment plant, upgrade treatment processes and allow for future expansion. The board passed the measure by approving Bill 2024-45, which became Ordinance 2191.

In the same meeting the board approved an ordinance authorizing the mayor to contract with Tri code for replacement of a section of the St. Clair City Hall roof. Staff said the work would use the remaining ARPA funds available for the project and that two additional roof phases (one described in the meeting as under $100,000 and another around $130,000) will be budgeted in future years. Staff reported three bids were received and that references for bidders including Trimco and Taylor Roofing were checked. The board approved Bill 2024-46, which became Ordinance 2192.

The council also approved Bill 2024-47, an amendment to Chapter 24 (Water and Sewer), Article 3 (Billing and Accounts Receivable), to establish the process for setting fees charged to third-party waste haulers that dispose of septic waste at the treatment plant. Staff explained the city's current charge is $0.03 per gallon and that the ordinance will raise the rate to $0.07 per gallon "to align with industry standard," and give the Public Works director authority to adjust rates based on cost. Bill 2024-47 became Ordinance 2193.

Votes at a glance: The transcript records motions and the phrase "motion carries" as each bill was considered, but it does not include roll-call tallies. Actions recorded in the meeting transcript are: - Bill 2024-45 (lease-purchase financing) → Ordinance 2191 — approved (motion carries). - Bill 2024-46 (City Hall roof contract with Tri code) → Ordinance 2192 — approved (motion carries). - Bill 2024-47 (amend Chapter 24 re: third-party waste fees) → Ordinance 2193 — approved (motion carries).

Other business: Council members discussed moving regular meetings to an earlier start time (options presented included 6 p.m. on various weekdays). Some members said an earlier start could make it easier for residents to attend; others said commuting schedules, work hours and evening commitments make 7 p.m. more workable. No formal change was adopted and the board indicated meetings will remain at 7 p.m.

Staff updates and next steps: Administrator Welon recognized Jason Ivy for assistance during Welon's first months in office and apologized that promised financial statements were delayed due to the city's financial software and outstanding reconciliations; Welon said staff expected to deliver the statements later in the week. Park staff and board members discussed posting the Christmas parade application on the city website, noted problems with spam on the event page, and said a website refresh will begin after Thanksgiving. The next regular meeting was announced for Monday, Dec. 2, at 7 p.m.

What was not specified: The transcript did not include full roll-call vote tallies for the ordinances, and the precise remaining ARPA balance referenced for the roof project was unclear in the record. The transcript also records multiple vendor names with varying spellings (for example, "Tri code," "TriCode," and "Trimco"); the city clerk said references had been checked and staff recommended the awards.